How Have Changes in World Economy Affected Room for Manoeuvre of Essay

How Have Changes in World Economy Affected Room for Manoeuvre of Multinational Films - Essay Example In the arguments by analysts in the business world, the ongoing crisis facing the globe cannot be confined to a discussion of how the countries should survive in the tough times, since the crisis has a long way to go to find lasting solutions. However, they advocate for an understanding of the variances between the countries and the policies that would have a long term solution to the crisis as compared to the short term solutions. This paper shall solely endeavour to find out how the changes in world economy since the neoliberal restructuring in 1980s through globalisation and the 2008 world crisis affected the manoeuvre of multinational firms. 2.0. Body 2.1. Neoliberal restructuring in 1980s through globalisation- dominant macro-economic framework   With the neoliberal restructuring in 1980s through globalisation, Robinson (2003) indicates that many governments held the opinion that this move would be extremely profitable for the countries. As if not enough, the IMF, World Bank a nd other corporations joined in the campaign of the positives of the globalisation, which saw the introduction of free markets in the globe. This is clearly the dominant macro-economic framework  .With free markets, it was believed that the trade would thrive on a higher rate; thus, a collective prosperity on the global arena. Through neoliberal restructuring, it was expected that a lot of countries would be saved form poverty stricken lives by the year 2015 (Petras & Veltmeyer, 2012). In the long run, however, the case was reported to be different, since most of the policies that were enacted, ended up not being implemented by the concerned parties, especially in the third world countries. In relation to this move and the manoeuvre of multinational firms, it can be argued that the firms faced a lot of challenges from the fact that they could not manage dealing with the tough completion that the ‘New Order’ that was existent in the region (Dunning & Mucchielli, 2002; Rugman, 2002). The state, global institutions and local establishments greatly affected MNCs ability to act, since a lot of consultations had to be made prior to embarking on any move. They had to adapt to their current ideologies in the market. A lot of capital was released in the market, an interpretation of escalating trends of capitalists in the market. For the prospective multi-national firms (MNCs), stringent measures were put, to govern their operations in the market. According to Ryner (2004), neoliberal restructuring in 1980s through globalisation was solely characterised by completion between the major players in the industry. This completion was not confined on the local realm, but an international one, that was geared for the benefits of a few business tycoons. Though a lot of these firms aimed at battling up with the competition, the business environment was not too conducive for running of the businesses. On another viewpoint, the survival of the multinational firms wa s made difficult by the fact that the poverty levels in the globe were on the rise, since a lot of people were unemployed (Rugman, 2005). At this particular time, these multinational firms, took the measure of applying corporate franchising, that led to the producers incur huge amounts of money to survive especially in low income countries. The operations of the global corporations in the globe saw the confinement of the jobs in the